A lack of demand, surplus stocks, global inflation and rising energy costs, which forced several European producers to stop production or to move towards doing so, have impacted and perplexed many traders in the Romanian longs market. As a result, some Romanian traders have attempted to boost rebar prices this week, while keeping the same price levels in the wire rod segment, eventually causing the rebar and wire rod prices to converge at the same levels.
“We are striving to increase prices, but there are no conditions to support this because demand is too low, and many European companies have cut their capacity, producing and selling in limited amounts, creating a panic among traders. Due to the sluggishness of sales and the volatility of pricing, Romanian traders want to import but do not want to risk a loss,” a trader told SteelOrbis.
Currently, retail rebar prices in Romania are in the range of €715-730/mt ex-warehouse, up from €705-720/mt ex-warehouse last week. For the past month, rebar traders have been particularly reluctant to import and, if required, have purchased less. Based on the most recent reports, Greece is offering at €750/mt delivered and €794/mt delivered, which was approximately €764/mt delivered last week, and Bulgaria is offering at €750/mt delivered.
Turkey's frequent pricing level, based on a $1 = €1,01 exchange rate and roughly €25-€30/mt freight, is about €722-€757/mt CFR and is not so workable because of quota restrictions.
Meanwhile, retail prices for wire rod in Romania remain unchanged from the previous week at €715-730/mt ex-warehouse, in line with rebar offers. Considering stocks are full and many traders are uncertain about the market direction, they are importing less or nearly none, and so an offer from Greece at €760/mt delivered was reported this week.